Shares of Texmaco Rail & Engineering slipped nearly 2% in Tuesday’s session, February 10, after the company reported a sharp decline in earnings and operating performance for the December quarter, which weighed on investor sentiment.
Texmaco Rail posted a net profit of Rs 42.8 crore in Q3, down 44.2% year-on-year from Rs 76.7 crore in the same period last year. Revenue also fell sharply by 21.5% year-on-year to Rs 1,041 crore, reflecting lower execution and muted topline momentum during the quarter.
Operating performance weakened further, with EBITDA declining 32.6% year-on-year to Rs 88.3 crore. The EBITDA margin narrowed to 8.5% from 9.9% a year ago, indicating pressure on profitability despite cost controls. The contraction in both absolute EBITDA and margins appears to have triggered profit-booking in the stock.
While the company recently secured two domestic freight wagon orders worth a combined Rs 126 crore, scheduled for execution through FY27, the market reaction suggests investors are currently more focused on the steep year-on-year drop in earnings and revenue rather than incremental order wins. The earnings disappointment has thus overshadowed the positive order inflows, leading to the stock’s decline in today’s trade.